Broadcom shares plunge despite record AI earnings and new institutional holdings

Broadcom reported a record fiscal second‑quarter, with AI chip revenue climbing 143% year‑over‑year to $10.8 billion and total revenue rising 48% to $22.2 billion. The company guided AI revenue to $16 billion for the next quarter, but its shares, which had hit an all‑time high the day before the earnings release, fell 13% on Thursday and a further 8% on Friday, erasing hundreds of billions of market value and pushing the market cap below $2 trillion.

At the same time, Suncoast Equity Management increased its Broadcom holding by 83.2%, acquiring an additional 40,240 shares to own 88,630 shares worth about $30.7 million, representing roughly 3.1% of its portfolio. Other institutional investors, including Baring Financial LLC, Five Oceans Advisors, Private Wealth Partners LLC, Planning Alternatives Ltd. ADV, and Bell Investment Advisors Inc., also raised their positions. Analysts from Cantor Fitzgerald, Morgan Stanley, DA Davidson, Mizuho and UBS issued “overweight” or “buy” ratings with price targets ranging from $475 to $530, supporting a consensus “moderate buy” rating.